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Texas Construction Law Blog For Subcontractors & Suppliers

Tag Archives: contingent payment clauses

Pay-If-Paid Clauses: A Powerful Shield From Payment

Posted in Construction Contracts

Subcontracts typically contain either a pay-when-paid clause or a pay-if-paid (i.e., contingent payment) clause.  A pay-when-paid clause only deals with the timing of the obligation to pay the subcontractor.  In other words, the general contractor’s obligation to pay the subcontractor (or the supplier) is due at some point in time after the the general contractor… Continue Reading